Samsung SDS headquarters in Songpa-gu, Seoul / Provided by Samsung SDS
Samsung SDS will issue convertible bonds worth 1.22 trillion won ($820 million) to global investment firm KKR to finance future investments in artificial intelligence (AI) services.
Samsung SDS said its board of directors on Wednesday approved the plan to issue convertible bonds. At the same time, KKR announced that it had entered into an agreement to acquire corporate bonds, with the two companies aiming to collaborate on “a variety of value creation initiatives” including AI transformation.
Convertible bonds are corporate bonds that can be converted into a specified number of common shares. KKR said the transaction is expected to close during the second quarter of this year.
Samsung SDS said it decided to enter into a strategic partnership with KKR amid growing demand for building capabilities ranging from AI infrastructure to platform solutions, adding that securing global investment will help strengthen the foundation for growth.
KKR will also provide active advisory capacity to Samsung SDS for six years in areas such as M&A, capital allocation, and supporting the company’s efforts to pursue strategic growth opportunities globally.
Backed by 1.22 trillion won in new funds secured through the partnership with KKR and 6.4 trillion won in existing cash and cash equivalents, Samsung SDS plans to significantly expand its investment in AI infrastructure and strengthen the competitiveness of its AX business.
Samsung SDS said it will not only leverage physical AI, stablecoins and other emerging businesses to enable sustainable growth, but also secure a global business foothold.
Samsung SDS is currently accelerating domestic AI infrastructure projects, including plans to complete a national AI computing center in Hainan City, Jeollanam Province in 2028, and an AI data center in Gumi City, Gyeongsangbuk Province in 2029.
The company is also promoting its data center design, construction, and operation (DBO) business, and is stepping up efforts to strengthen its competitiveness in the domestic AI infrastructure market.
Samsung SDS is also strengthening its position as a leading provider of end-to-end AI transformation services, leveraging its expertise in providing IT services to manufacturing, finance, and public sectors.
It is also expanding its relationships with top players in the global AI industry, and late last year became the first Korean company to partner with OpenAI.
“We are pleased to welcome KKR as a strategic investor as we continue to advance our growth strategy,” said Lee Jun-hee, CEO of Samsung SDS. “Through this strategic alliance, we will leverage KKR’s accumulated expertise in global capital markets and proactively explore a wide range of growth opportunities, including M&A.”
“This unique strategic partnership brings together Samsung SDS, one of South Korea’s most established conglomerates, with KKR’s global experience in long-term value creation,” said Park Chun-ho, Head of KKR Korea. “Against the growing demand for digital transformation and AI solutions, we have strong confidence in Samsung SDS’ market leadership and growth potential by playing a key role in advancing Korea’s digital capabilities and infrastructure.”
